There's One HUGE Detail Missing From The Mortgage Settlementhttp://www.businessinsider.com/the-mortgage-settlements-missing-piece-will-banks-now-follow-the-law-2012-2/comments
en-usWed, 31 Dec 1969 19:00:00 -0500Sun, 02 Aug 2015 18:33:46 -0400Bruce Judsonhttp://www.businessinsider.com/c/4f3926206bb3f7901f000045The question isMon, 13 Feb 2012 10:02:56 -0500http://www.businessinsider.com/c/4f3926206bb3f7901f000045
is the government trying to get borrowers out of their mortgage or fine the banks soley based on technicalities rather than clear and blantent misrepresentation? When you signed the ntoe for an ARM loan, you * knew * the interest "may (read will) go up to x.xx%."
The government appears to be focusing on only the big banks. Well, what about all the little ones who did the same thing? Why are they getting off scott free? Perhaps the answer is much simpler than anyone imagines. The government just wants more money and those with the deepest pockets will get hit the hardest. And so government injustice continues to roll on. Bring on the next big settlement.http://www.businessinsider.com/c/4f3863e4ecad04e01500004eBrownknowsSun, 12 Feb 2012 20:14:12 -0500http://www.businessinsider.com/c/4f3863e4ecad04e01500004e
Seems to me what the banks did violated foreclosure laws not the contract itself between borrower and lender. This effectively throws contract law under the bus. Millions of responsible homeowners may say why pay the mortgage if government can void the terms of the contract? Sweet. Just claim you were misled at application, or the market is unfair to you because you're underwater, stop making your house payments, appeal to your state's attorney general and apply for relief. Maybe you'll go months without having to make a payment before the state orders the lender to forgive a sizable portion of your debt, or forces a refinance at below market rates. What was the lenders crime? They followed government orders to loan to people who couldn't afford the loan, and now are being extored of billions for following governments orders. Quite the racket.http://www.businessinsider.com/c/4f3840db69beddd06f00004eFord PrefectSun, 12 Feb 2012 17:44:43 -0500http://www.businessinsider.com/c/4f3840db69beddd06f00004e
Actually, I think the biggest thing missing from the settlement is an actual agreed upon settlement. I don't believe that there is a final document that has been agreed upon in entirety by both sides. Therefore it is kind of like legislation that has not gone through the final conference committee to iron out the differences between Senate and House versions.
There is still much mischief to be done by the lobbyists on this.
I will believe that we have the rule of law when we see major executives in jail because of Sarbanes-Oxley violations. Also, when this Administration does not warp property rights, such as putting MF Global through Chapter 11 instead of Chapter 7 bankruptcy, which moved TBTF banks in line in front of segregated account customers.http://www.businessinsider.com/c/4f380947ecad049476000056SkepticSun, 12 Feb 2012 13:47:35 -0500http://www.businessinsider.com/c/4f380947ecad049476000056
Don't you believe in Caveat Emptor -- do you REALLY think it's the amateur seller's job to tell the professional bankers when they’re forking over bundles Mortgage cash -- for a bad deal?http://www.businessinsider.com/c/4f37e63c6bb3f74074000023mike42343Sun, 12 Feb 2012 11:18:04 -0500http://www.businessinsider.com/c/4f37e63c6bb3f74074000023
Any penalties for making option ARM loans to those you know are going to default because mortgage-backed securities were hot?
And then ask the government six months later for a bailout and force the country into a huge recession?http://www.businessinsider.com/c/4f37d4836bb3f75646000159PeterSun, 12 Feb 2012 10:02:27 -0500http://www.businessinsider.com/c/4f37d4836bb3f75646000159
Any penalties announced for those who take out an Option ARM mortgage they know they can't afford but lie about their income on their no-doc application in order to qualify anyway?
And then default six months later and force the country into a huge recession?http://www.businessinsider.com/c/4f37be45ecad04e87200015dSteve ThompsonSun, 12 Feb 2012 08:27:33 -0500http://www.businessinsider.com/c/4f37be45ecad04e87200015d
One thing that always seems to be missing from the discussion about the housing crisis is the passivity of the Federal Reserve, particularly Ben Bernanke and Allan Greenspan, even though there were signs in various housing markets that indicated that problems lay ahead as shown here:
<a href="http://viableopposition.blogspot.com/2012/01/where-fed-went-wrong-or-how-they-missed.html" target="_blank">http://viableopposition.blogspot.com/2012/01/where-fed-went-wrong-or-how-they-missed.html</a>
Not only did the Fed's easy credit policy amplify the housing bubble, they stood by while it imploded.http://www.businessinsider.com/c/4f37bbdceab8eaab5600001bwatchingthesuckingmachineSun, 12 Feb 2012 08:17:16 -0500http://www.businessinsider.com/c/4f37bbdceab8eaab5600001b
of course
"America" is the biggest liehttp://www.businessinsider.com/c/4f37b5bc69beddae5c00001amike42343Sun, 12 Feb 2012 07:51:08 -0500http://www.businessinsider.com/c/4f37b5bc69beddae5c00001a
This settlement ensures job security for lawyers.http://www.businessinsider.com/c/4f35c92aecad046a13000012dxFri, 10 Feb 2012 20:49:30 -0500http://www.businessinsider.com/c/4f35c92aecad046a13000012
Slightly off topic: I haven't seen any commentary on how criminals might utilize this settlement as a way to avoid prosecution by claiming a violation of the equal protection clause. I am not a lawyer, but it seems as if this would be a valid defense, especially since courts have made corporations equal to "persons" in a number of cases. Any thoughts?